Aside from cost, what factors do you prioritize when evaluating potential new warehousing sites?
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As others pointed out, the first and foremost question will be: what is the WH for (e.g. mfg alone, mfg and distribution, distribution only, what channel and type of distribution etc.)?
Then it can be determined, if you really need one or not, based on your own company's longer-term strategy as it is not that easy to uproot an established WH (I assume that's already done, hence your question).
From here:
good quality workforce availability, labour law and land/property lease conditions, environmental and tax requirements, general business environment, availability of services from partners in the area (e.g. if you need LTL road freight but it is not offered by any of the carriers in the area, would you start that as well to support your business?), energy infrastructure, environmental risk and how your business would impact the area in all ESG areas.
Labor availability, quality, and energy infrastructure would be top of mind. It’s also important to consider the general business environment from a governmental regulation and taxation perspective. The geographic location is also critical: how much land do you have? Are you located near suppliers and customers?
1. Workforce availability!
2. Geography on strategic level - significant cost difference (for example shipping from Poland to Germany)
We’re prioritizing the scarcity of warehousing and what’s available. The primary driver is determining what the new site will do for that particular market. There are factors to consider around the termination of employees, the current wage rate for the area, and existing competition within the region. Is the site truly enhancing that market? Am I now getting packaging down from five days to two days? Is that the intent?
Good question and insightful comments here. Factors to prioritize when evaluating a potential new warehouse; 1. Location closer to customers while facilitating your own supply chain network. 2. Workforce & needed operational resources availability. 3. Related governance laws, regulations, tax, Infrastructures, Traffic flows, Fuel, and energy sources 4. Potential Risks and disasters, etc. that could harm or disrupt business continuity.